Published on Fri May 23, 2014 at 11:50 AM
Sebi has decided to increase this limit from Rs.20,000 to Rs.50,000 per investor, per mutual fund, per financial year subject to compliance with applicable Acts, Rules and Regulations.
Presently cash transactions in Mutual Funds are allowed to the extent of Rs.20,000 per investor, per mutual fund, per financial year.
However, repayment in the form of redemptions, dividend, etc. with respect to aforementioned investments shall continue to be paid only through banking channel.
Along-with Money Market Mutual Fund ( MMMF) schemes, Sebi said that transaction in liquid schemes would be exempted from being reported by employees of Asset Management Companies (AMCs) and Trustees of Mutual Funds to compliance officer within seven calendar days from the date of transaction. This was decided as Sebi circular said, "Liquid schemes have emerged as a distinct category of Mutual Fund scheme having features similar to that offered by Money Market Mutual Fund (MMMF) schemes".
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